1. Home inspection

Cost: $300-$500

A home inspection isn’t always a required part of the homebuying process, but having your future home inspected by a professional can save you thousands of dollars in future repair costs by identifying problems before you close.

2. Appraisal fees

Cost: $300-$600

Most lenders require an appraisal to confirm that the home is worth the purchase price. If the appraisal comes in lower than the agreed purchase price, you may need to renegotiate the price or cover the difference out of pocket.

3. Closing costs

Cost: 2-5% of the home’s purchase price

Closing costs might be the most substantial hidden expense in the homebuying process. They include various fees, such as:

  • Loan origination fees. Lenders charge this fee to cover the administrative work that’s involved in processing your loan. You can save thousands with our affordable lender's fee!
  • Title insurance and title search. Title insurance protects both you and the lender from potential ownership disputes. The title search is conducted to ensure there are no existing claims on the property.
  • Recording fees. Local governments charge these fees to make your ownership official in public records.
  • Escrow fees. An escrow company manages the transfer of funds and important documents between buyer and seller.

4. Property taxes

Cost: varies

Property taxes are an ongoing expense that can vary significantly depending on where you live. While most people understand they’ll pay property taxes, it’s easy to dismiss how much they can cost each year.

5. Private mortgage insurance (PMI)

Cost: 0.3-1.5% of the loan (annually)

If your down payment is less than 20% of the home’s purchase price, most lenders will require you to pay for private mortgage insurance (PMI). PMI protects the lender if you default on the loan, and it typically costs between 0.3% and 1.5% of the loan amount annually.

6. Homeowners insurance

Cost: $800-$1500 (annually)

Homeowners insurance is a necessary expense that protects you in the event of natural disasters, theft, or accidents. Many lenders require buyers to pay for the first year’s premium upfront at the time of closing.

7. Professional cleaning

Cost: $120-$325

Most sellers will deep-clean their home before putting it on the market, but they may not be as detailed when they actually move out. Real estate contracts generally require the home to be “broom-clean” before the seller moves, but this only means a very basic cleanup, with floors swept and trash removed. You may choose to have your home professionally cleaned and sanitized before you move in for a real, fresh start. Be sure to budget for this cost.

8. Immediate repairs

Cost: Varies

Unless you’re buying a new construction home, your new house will likely need some repairs. From a fresh coat of paint, to new window treatments and light fixtures, to replacing carpets and appliances, this can cost just a few hundred dollars to several thousand or more.

9. Moving

Cost: $500-$3000

The cost of moving itself is often overlooked, but can add up quickly, especially for long-distance moves or if you need professional movers. Moving expenses include packing supplies, rental trucks or a moving company. The cost of this can run anywhere from a few hundred to several thousands of dollars.

Don’t let the hidden costs of moving take you by surprise! Use our guide to be prepared for the true cost of moving.

 

Climb higher with the right mortgage.

Buying a home is a big journey, but don’t worry—you’re not climbing alone! With a $1,500 flat lender’s fee to help you save thousands, easy pre-approvals, and a team that actually cares (seriously, we do!), we’re here to help you every step of the way.

Start your ascent today at **climbcu.org/mortgage.**

1Terms and conditions apply. Subject to end at any time. This offer is exclusively applicable to first mortgage loans or refinances and may not be combined with any other promotions, discounts, or special offers. The flat fee covers all lender charges, such as origination fees, discount points, commitment fees, credit reports, tax service fees, underwriting and processing fees. The flat fee does not include prepaid items and third-party costs such as appraisal fees, recording fees, prepaid interest, property & transfer taxes, homeowners insurance, borrower's attorney's fees, private mortgage insurance premiums (if applicable), survey costs, title insurance and related services. The principal and interest payment on a loan amount of $350,000 for a purchase transaction with a 30 year term at 7.00% APR would be $2,329. Payment example is based on a credit score of 780+ with 20% down payment. Payment(s) does not include amounts for taxes and insurance premiums, if applicable. The actual payment obligation will be higher. Climb Credit Union partners with Centennial Lending to process, underwrite, and close mortgage loans. Members will apply with Centennial Lending and a Climb loan officer will coordinate the transaction. Must open a Peak Checking account and establish a monthly automated payment from your Peak Checking Account. Subject to credit approval. Other terms and conditions may apply.